IRS TO FURLOUGH EMPLOYEES ON FIVE DAYS
Washington, D.C. -- The Internal Revenue Service will close all of its public operations on five days from now through August because of employee furloughs, Acting Commissioner Steven Miller informed employees in a memo in mid-April.
The tax agency will be closed and almost all employees will be furloughed on May 24, June 14, July 5, July 22 and August 30, Miller wrote. The closing will affect operations such as the IRS toll-free lines and taxpayer assistance centers.
As many as two more furlough days may be needed in August and September, Miller wrote.
Government agencies are furloughing employees to accommodate the budget reductions that took effect March 1.
DEDUCTION LIMITS FOR HEALTH SAVINGS ACCOUNTS ADJUSTED
Washington, D.C. -- The Internal Revenue Service has changed the inflation-adjusted annual limitation for health savings accounts for next year.
Revenue Procedure 2013-15 provides the 2014 inflation-adjusted amounts for health savings accounts.
The annual limitation on deductions under Section 223(b)(2)(A) of the Tax Code for an individual with self-only coverage under a high-deductible health insurance plan is $3,300.
For calendar year 2014, the annual limitation on deductions under Section 223(b)(2)(B) for an individual with family coverage under a high-deductible health insurance plan is $6,550.
For calendar year 2014, a "high-deductible health plan" is defined under Section 223(c)(2)(A) as a health plan with an annual deductible that is not less than $1,250 for self-only coverage or $2,500 for family coverage, and the annual out-of-pocket expenses (including deductibles, co-payments and other amounts, but not premiums) do not exceed $6,350 for self-only coverage or $12,700 for family coverage.
The revenue procedure is effective for calendar year 2014 and will be published in the Internal Revenue Bulletin 2013-21 on May 20, 2013.
IRS FORMALIZES 3-MONTH BOSTON EXTENSION
Washington, D.C. -- The Internal Revenue Service released Notice 2013-30, formalizing a three-month extension for filing and paying taxes for those affected by the Boston Marathon bombings.
The extension was originally announced on April 17, and applies to all individual taxpayers who live in Suffolk County, Mass., including the city of Boston, as well as victims, their families, first responders, others impacted by the tragedy who live outside Suffolk County, and taxpayers whose tax preparers were adversely affected.
The IRS will automatically provide the relief to all taxpayers who live in Suffolk County; those outside Suffolk County can call (866) 562-5227. Eligible taxpayers who receive notices requesting the payment of additions to tax for late filing or payment from the IRS can call this number to have these additions to tax abated.
EIN HOLDERS TO PROVIDE UPDATED INFO
Washington, D.C. -- The Internal Revenue Service has issued final regulations requiring any person who has been assigned an Employer Identification Number to provide updated information to the IRS.
The regulations affect people and businesses with EINs and are aimed at enhancing the IRS's ability to maintain accurate information about persons who have been assigned EINs. The regulations are expected to take effect in 2014.
The final regulations require any person assigned an EIN to provide updated information to the IRS in the manner and frequency prescribed by forms, instructions or other appropriate guidance.
The IRS noted in the regulations that the collection of this information is necessary to allow the IRS to gather correct application information with respect to persons who have EINs. An agency may not conduct or sponsor, and a person is not required to respond to, a collection of information unless it displays a valid control number assigned by the Office of Management and Budget.
The Treasury Department and the IRS originally published a notice of proposed rulemaking in the Federal Register, on March 14, 2012, requiring persons issued EINs to provide updated application information to the IRS.
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